ASIC will conduct a surveillance into the provision of interest-only loansas part of a broader review by regulators into home-lending standards. The probe will look at the conduct of banks, including the big four, and non-bank lenders and how they are complying with important consumer protection laws, including their responsible lending obligations. The review follows concerns by regulators about higher-risk lending, following strong house price growth in Sydney and Melbourne.

Clearance rate remains lower than when spring started. A preliminary weighted average clearance rate of 66.6 per cent was recorded this week across capital cities compared to 63.7 per cent last week and 64.5 per cent this time last year. High auction volumes and a market where value growth is moderating explain why the capital city auction clearance rate has remained below 70 per cent for the past 10 weeks.

NAB announcedthat it expects the Reserve Bank of Australia to reduce the cash rate to 2 per cent by making 0.25 per cent cuts in March and then August. It comes after Westpac forecast that the Reserve Bank would reduce the cash rate both in February and March, which would mean a rate no higher than 2 per cent. The cash rate is currently at a record-low 2.5 per cent, where it has remained for 16 months.

Peter Sarmas is a Certified Property Investment Advisor (PIAA) and Vendor/Buyer Advocate. Before becoming the founder of Street News, Peter completed a Degree in Applied Science (Chemistry) and a Graduate Diploma in Property Valuations (Hons). Peter believes property investing is a major and potentially risky undertaking. In his view, everyone should have an independent person acting on their behalf when seeking property investment advice.